03/15/2022

Financing EV Home Charging Installations and Electrification Upgrades

blog-post-img1
5 Min. Read

The demand for electric vehicles (EVs) is soaring and so is the need for EV home charging installations and other electrification upgrades. Home charging is now in reach for EV owners. To accelerate the transition to EVs, the federal government, the majority of states and some municipalities are offering incentives to help offset the costs for buyers. This article will explore charging options, costs, and other considerations of implementing a home EV charging solution.

The electrification revolution

Electric vehicles are rapidly gaining popularity. So are the accessories that keep them running. Throughout the halls of governance, there is a desire to get as many people as possible using this technology. As a result, there are hundreds of local, state and federal incentives to help the average person save thousands of dollars when buying an EV and its accessories.

EV home charging installations

When EVs first started appearing in showrooms, charging time and range were the most significant concerns. Most EVs come with Level 1 chargers, which are slow. Level 2 EV chargers replenish an EV much faster than a standard-issue Level 1 charger. A Level 1 charger can take 40-50 hours to charge an EV from empty; a Level 2 charger only takes 4-10 hours, depending on the manufacturer. This charging speed difference is a massive benefit for people who need to make longer trips in their EVs or cannot afford to wait for long periods while their EV charges. Level 2 chargers cost from $500 to $800, with standard installations ranging from $799 to $1,999, not including the purchase price of a Level 2 charger.

A standard installation includes the cost of labor, materials and expertise needed to add a circuit to your existing electrical panel and either install a NEMA 14-50 electrical outlet or hardware charging station. Mounting of the hardware charging station is also included in the cost.

As no two homes are exactly alike, a standard installation assumes that your garage is attached to your home. In addition, your electrical panel must have:

  • Sufficient ampacity to handle the additional charging station load.
  • Enough circuit room within your electrical panel to accommodate a new 2-pole breaker.

If your home doesn’t meet these criteria, Qmerit can prepare a custom proposal for your unique situation.

Solar panels

If you want to go completely green, you can power your EV charger through solar panels. Currently, solar panels go for about $3 per watt, including the cost of the panels and installation. For example, a medium-sized installation providing 6 kW of peak energy will cost in the vicinity of $18,000, depending on your location. However, this cost does not include system accessories like battery storage or inverters. Therefore, the average total cost ranges between $20,000 and $30,000.

Panel upgrades

Electrical panel upgrades are a critical component of any home electrification project. As you increase the number of devices that require electricity, you also increase the load on your existing circuitry. Since many homes were not designed to handle these loads, they inevitably encounter problems.

A certified electrician can upgrade your home’s electrical panel if needed. Once upgraded, they can then install your EV charger and make other electrification improvements as desired.

EV and electrification incentives

EVs themselves, and solar panel systems qualify for incentives. The 2022 federal tax credit for an EV home charger installation is 26%. The same percentage applies to solar panel installations. This credit will decrease to 22% in 2023 and disappear entirely in 2024, so act sooner rather than later for maximum savings.

There are also state and local incentives for EV home charger installations and solar panel systems. Every incentive is different. Incentives vary by state and locality.

There are also incentives specifically intended for upgrading electrical panels. For instance, New Mexico provides a $300 rebate on Level 2 chargers with an extra $1000 for electrical panel improvements. While not specific, the 26% federal tax credit covers all parts of the solar panel system, including the panel and installation costs.

A huge benefit is that incentives may be able to be combined. For example, you may be able to use a state rebate in conjunction with a federal tax credit. There may be no need to choose between them. If incentives are offered, you can take advantage of them.

You can afford to go electric

Even with all these incentives, upgrading your home to green electrification can be expensive. Luckily, there are different tools around to help you finance these upgrades and invest in the future.

Qmerit offers financing packages for all of your electrification needs to include the EV charging station, panel upgrades, battery storage and solar integration.

Many entities offer personal loans specifically designed for solar energy. The main types available are the combo loan, term loan, or same as cash loan. These types of loans require a soft credit check.

A loan that does not require a credit check is the Property Assessed Clean Energy (PACE) loan. Currently, PACE financing programs are available in Florida, Missouri and California.

Suppose you have a lot of equity in your home. In that case, you can borrow against that value through a fixed rate Home Equity loan or a variable rate Home Equity Line Of Credit (HELOC). These options do not require a credit check. However, they require extensive paperwork, and your home serves as collateral.

You can also lease solar panel systems from the manufacturer or a third-party owner. At the end of the term, you have the option to extend the lease, buy it at market value, or remove it altogether. Alternatively, one can enter a Purchase Power Agreement (PPA) where a third party owns the solar panels. Instead, you pay for the energy used, much like a utility.

Your partner in electrification

Installing advanced electrification in your home is not something you can do by yourself on a free weekend. Instead, you’ll need skilled professionals who can safely make the changes to your home. Qmerit has over two decades of experience helping homeowners go green. Specializing in turnkey EV home charging installations, Qmerit takes care of installation and integration to ensure a seamless experience for the owner.

Qmerit and its network of qualified contractors have installed over 150,000 EV chargers for residential and commercial customers. Contact us to find out how to upgrade your home with EV home charging installation or other electrification projects.

Author: Lowry Stoops Lowry Stoops President, Qmerit Network